Manufacturing and agriculture continue to form the backbone of Kenya’s economy. In 2019, manufacturing accounted for 7.7% of GDP and agriculture for 34.2%, underscoring their central importance. Yet industrial expansion has slowed since the 1980s, constrained by high energy costs, regional competition, and an influx of cheaper imports.

Tea is one of Kenya’s most important economic sectors: it is the country’s leading export commodity, accounting for 16.3% of total exports and supporting over 7 million livelihoods across the value chain. However, tea production in Kenya is also highly energy-intensive. A 2023 EPRA benchmark study shows that producing one tonne of black tea requires roughly 8.5 MWh of heat and 570 kWh of electricity, with more than 90% of total energy use coming from heat generated mainly through fuelwood combustion. An average tea factory processes about 4.1 million kg of black tea per year, consuming around 34,850 MWh of heat and 2,340 MWh of electricity. Based on a national annual output of approximately 493,000 tonnes, sector-wide emissions are estimated at around 5 MtCO₂e per year.

In Kenya, PUE technologies span agricultural processing, preservation, livestock and poultry equipment, fishing and aquaculture solutions. The national PUE market remains at an early stage but is expected to grow significantly over the next five years.

Growing uptake of off-grid and productive-use appliances in both residential and industrial sectors is driving a rise in electronic waste. Rural areas are particularly affected, as limited repair and maintenance services shorten equipment lifespans and increase disposal needs. Kenya generates an estimated 51,000 tonnes of e-waste annually, and inadequate end-of-life management poses environmental risks. Strengthening repair services, recycling and material recovery systems would help extend product life, reduce waste, and create opportunities for value creation through e-waste processing.

Kenya has emerged as one of Africa’s most advanced clean-energy performers, building an electricity system driven overwhelmingly by renewables and making rapid progress toward universal access. With an installed capacity of just over 3,000 MW, the power mix is anchored in geothermal, hydro and wind, complemented by solar and thermal generation. This foundation has supported strong economic momentum, yet rising demand and expanding industrial needs are beginning to place increasing pressure on the system.

As the country pursues its Vision 2030 ambition to become a middle-income, industrialized economy, securing reliable and sustainable energy remains essential. Kenya’s commitment to full renewable electricity by 2030 highlights the importance of pairing generation investments with large-scale energy-efficiency improvements. Efficient technologies can slow the growth of demand, reduce stress on infrastructure, and improve affordability, particularly in sectors where consumption is accelerating.

Buildings, appliances and thermal uses account for a significant share of total energy use, and demand is set to grow sharply as urbanization, population increase and higher living standards drive expansion of residential and commercial loads. Biomass remains the predominant source of energy for many households, especially in rural areas, contributing to deforestation and environmental degradation. Strengthening access to modern, efficient solutions is therefore central to improving energy security and reducing pressure on natural resources.

Industry plays a decisive role in Kenya’s energy landscape, representing roughly half of national electricity consumption. Demand from light manufacturing, processing, motors, cooling systems and other equipment is expected to rise substantially in the coming years. Ensuring that this growth is anchored in efficient technologies is critical not only for lowering energy costs and strengthening competitiveness, but also for safeguarding the country’s broader decarbonization pathway.